It's been a while since I used my debit card. When I logged into my account today, I learned that a merchant, on 9th September charged my debit card $YY. I didn't have enough cash for that so the company paid the cash and my balance now is in the negative. I don't even know how that happened because normally when you don't have enough cash to make a payment, the payment just won't go through — your card would be declined. Will the bank slam me with overdraft fees or something like that?
Yep, unfortunately you'll be hit with overdraft fees. Usually, it's like $15 or something close to that. You can change the settings on all of your cards online that you want the card to be declined when you don't have enough funds to cover the purchase and prevent the overdraft fee. My bank had automatically given me an "overdraft protection" that I didn't want, so just be careful with those hidden charges.
It depends on your bank and their overdraft policy. Some give you an extra amount of time to transfer or deposit money into your account. Some will charge you an overdraft fee immediately. It just depends on the type of account you have and the bank. If it was a mistake and doesn't happen often you might be able to get the charge reversed if you talk to customer service. If you have a savings account you should see if your bank will let you link it to your regular account in case of accidental overdrafts. It can save you a lot of money!
These fees vary by financial institution but I do not see a way around them. It makes things difficult because on top of not having enough money to cover your purchases you are now saddled with additional fees, they can add up quickly and put you in quite a hole.
I think so, yes. When my debit card balance goes to negative, I make sure that I deposit the minimum balance immediately - like within two banking days. If I fail to do this, the bank might charge me or cut off my debit card.